Topping the list and outperforming in that span have been emerging market countries like Brazil and India, which are both up well over 6.5%. International ETFs don't only have momentum on their side, but they also offer higher yields than the US at the current moment. Across all 22 ETFs, the average yield stands at 3.25%.

Investors welcome prospect of hundreds of billions of euros to be spent on infrastructure and defense

Rebecca Patterson, fmr. Bridgewater, joins 'Fast Money' to talk investing in domestic and European markets.

The DAX has surged 63% since 2023, despite Germany's economic struggles, with a 90% rise from its October 2022 low. EWG ETF, primarily composed of DAX stocks, has seen impressive runs in sectors like industrials and IT, driven by Trump's influence. Trump Effect: Similar to 2017, Trump's election seems to have boosted market sentiment, but conditions are now more fragile.

European stocks, particularly Germany's DAX, are outperforming the S&P 500, driven by ECB's rate cuts and a weaker euro. I downgrade iShares MSCI Germany ETF (EWG) to a hold due to its high valuation and technical resistance at $35-$37. EWG has strong price strength and significant sector exposure, but its P/E ratio and earnings growth rate suggest it's no longer a bargain.

EWG underperforms the S&P 500 due to a weak German economy and high exposure to cyclical sectors, resulting in higher volatility and downside risk. Germany's struggling economy, indicated by a composite PMI below 50, suggests continued economic challenges and poor growth prospects for EWG. EWG's portfolio composition, with low defensive sector exposure and high cyclical sector exposure, contributes to its higher volatility and risk.

Shanghai CSI 300 has gone from a 52-week low to a 52-week high in only a couple of weeks. Other than China and Hong Kong, Australia is the only other international market starting the week at a 52-week high.

The gradual cooling of the German labour market continues, providing further arguments for the European Central Bank doves to put an October rate cut back on the table. Recruitment plans in both industry and services have already fallen to the lowest level in a year.

Germany faces chronic underinvestment, weak productivity, aging demographics, geopolitical tensions, and poor performance in key export markets like China. Analysts predict minimal economic growth for Germany in 2024, with slight improvement expected in 2025-2026. Investors should remain cautious about German equities. The risk/reward outlook is skewed towards risk due to ongoing deindustrialization and other economic challenges Germany is facing these days.

US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.